TransAlta Corporation - TAC STOCK NEWS

TransAlta (TSX: TA, NYSE: TAC) has entered into an automatic share purchase plan (ASPP) with its broker for repurchasing its common shares under the previously announced normal course issuer bid (NCIB). The NCIB allows for the purchase of up to 14 million shares from May 31, 2024, to May 30, 2025. So far, 1.7 million shares have been bought at an average price of $9.77, totaling $16.6 million since the NCIB's start. The ASPP, effective July 1, 2024, will enable share purchases even during periods when TransAlta cannot buy shares due to regulatory or blackout restrictions. All purchased shares will be canceled to enhance shareholder returns. The ASPP will terminate either upon reaching its purchase limit, by August 6, 2024, or if terminated by the company.

TransAlta (NYSE: TAC) has announced a new normal course issuer bid (NCIB) approved by the Toronto Stock Exchange (TSX). The NCIB permits TransAlta to repurchase up to 14,000,000 common shares, representing about 4.6% of its outstanding shares, between May 31, 2024, and May 30, 2025. These transactions will depend on market conditions and be executed at the company's discretion. The move aims to enhance long-term shareholder value, as the company's board and management believe the market often undervalues their shares. During the previous NCIB, TransAlta repurchased and canceled 8,561,800 shares at an average price of $9.50 each. The company focuses on long-term shareholder value and operates various power generation assets in North America and Australia. It has also achieved significant reductions in greenhouse gas emissions and received an upgraded ESG rating.

TransAlta has commenced commercial operations of its 200 MW Horizon Hill Wind Project in Logan County, Oklahoma. This facility is fully contracted to Meta Platforms Inc., providing clean electricity and environmental attributes. Horizon Hill is TransAlta's 30th wind facility and marks the conclusion of a significant construction program initiated in 2021, adding 800 MW of renewable energy. With this addition, TransAlta's U.S. renewables fleet surpasses 1 GW. In February 2024, TransAlta signed a 10-year transfer agreement with an AA- rated customer for 80% of the expected production tax credits, with the remaining credits to be sold later. The facility is expected to generate an annual adjusted EBITDA between $31 million and $33 million.

TransAlta reported strong financial results for the first quarter of 2024, surpassing expectations despite a decline in spot power prices in Alberta. The company's operational and financial performance was highlighted by an Adjusted EBITDA of $328 million, Free Cash Flow of $206 million, and various business developments. With a focus on asset optimization and hedging strategies, TransAlta remains confident in achieving its 2024 guidance and continues to prioritize shareholder value through share repurchases and capital allocation strategies.

TransAlta held its Annual Meeting of Shareholders on April 25, 2024, where all twelve director nominees proposed by management were elected. The appointment of Ernst & Young LLP as auditors for 2024 was approved, and the non-binding advisory vote on executive compensation was also approved.

TransAlta (TAC) declares dividends for common shares and preferred shares. The quarterly dividend for common shares is $0.06 per share, payable on July 1, 2024. The Board also announced dividends for various series of Cumulative Redeemable Rate Reset First Preferred Shares, with rates ranging from 2.877% to 8.081% per share, payable on June 30, 2024. Currency is in Canadian dollars unless specified otherwise.

TransAlta announced the commercial operation of the 300 MW White Rock wind project in Oklahoma, fully contracted to Amazon Energy , increasing its US renewables fleet to 820 MW. The project marks TransAlta's largest wind project to date and includes a long-term agreement for the sale of production tax credits. The company is diversifying its revenue streams and commitment to sustainability, with further expansion in Oklahoma on the horizon.

TransAlta collaborates with other water licence holders and the Alberta Government to manage water flows in the Bow River System during expected lower water year. The company will maximize storage in the spring to sustain water flow in the summer, aiming to mitigate drought conditions.

TransAlta announces the retirement of Todd Stack, CFO, and the appointment of Joel E. Hunter as the new CFO effective July 1, 2024. Todd Stack's 34-year tenure with the Company is highlighted, praising his contributions to TransAlta's success and strategic positioning. Joel E. Hunter, a seasoned energy executive, brings over 26 years of finance and capital markets expertise to the role, aiming to help TransAlta achieve its strategic objectives.